OCBC rolls out AI-native banking, to hire 600 relationship managers in wealth push

[SINGAPORE] OCBC is going big on artificial intelligence even as it increases its human advisers in a bid to deepen its wealth push.

South-east Asia’s second-largest bank is launching an app for its wealth customers that features digital avatars that act as 24/7 advisers. It is also set to hire 600 relationship managers over the next three years for its consumer banking business, the bank said on Wednesday (Jul 1).

These are part of initiatives under the lender’s “next frontier” strategy, which aims to use AI, digital tools and data to boost growth.

The new app, called OCBC WoW, will include two avatars that can provide hyper-personalised wealth management services in real time.

AI-native banking generally refers to a banking platform where AI is built into the core architecture instead of being a standalone feature.

OCBC expects this AI-native environment, where it uses the tech to tailor news and advice to individual customers’ needs and preferences, will help meet customers’ increasingly sophisticated needs and build deeper and stickier relationships.

When asked how avatars differ from human advisers, OCBC group chief executive Tan Teck Long noted that the revenue and number of transactions linked to these two are “going to be very different”.

Tan said: “(Customers) may… want to discuss what we hope are simple things (with the avatar), and once they make up their mind, they can proceed to transact. But when it’s a little bit complex, they (may) want to bounce (their plans) off their relationship manager as well.”

Sunny Quek, head of global consumer financial services at OCBC, noted: “Humans still want the human touch, so that’s where the relationship manager comes in.”

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Quek earlier told The Business Times that he planned on doubling the bank’s consumer banking wealth business by 2029.

Tan said that the bank is looking to spend “north of S$1 billion” a year in the next few years to build infrastructure to support its AI initiatives.

Avatar banking will help grow the lender’s business instead of reduce its workforce, as customers can engage with the bank through the avatars 24/7, before transacting through digital channels or their relationship managers, depending on the complexity or their needs, Tan added.

He expects the move will create the “fourth wave of banking”: Instead of using AI to be a cost saving for the bank, the avatar-driven initiative is an area which can generate revenue.

The beta version of OCBC WoW will be released to a selected group of employees and customers on an invitation-only basis. Customers who are invited are those with minimum assets under management of S$1.5 million and who are currently served by OCBC Premier Private Client wealth advisers.

A fuller roll-out is expected at a date to be announced.

The avatars will initially engage with customers in English while, languages such as Mandarin, Bahasa Melayu and Bahasa Indonesia will be progressively introduced.

The bank will also look to introduce tailored insurance solutions and banking services, a wider range of avatars, as well as deals and rewards.